Weddings set to pinch due to GST: Assocham
All services have become dearer in the new tax regime.
New Delhi: The upcoming wedding season starting in November may be impacted by 10 to 15 per cent particularly wedding services like marriage hall booking, tent booking, confectionery services and photography among others, said industry chamber Assocham on Monday.
“Factors like demonetisation and the Goods and Services Tax (GST) are likely to impact the upcoming wedding season in India as people will have to shell out more on buying jewellery and apparels, at salons and beauty parlours, photography, even for hiring venues like hotels/marriage palaces, courier and other related services,” said Assocham.
The chamber said that the average cost of many wedding services like shopping, tent booking and food services among others is higher due to GST.
“The GST rate on most of these services is from 18 to 28 per cent. Before GST, most of the wedding service businesses like tent services, confectionery booking and others were using unregistered bills on which they didn’t have to pay any tax,” it said.
It said all footwear above Rs 500 is taxed at a whopping 18 per cent.
“Tax on gold and diamond jewellery has increased from 1.6 per cent to 3 per cent. The booking for a 5-star hotel will cost 28 per cent extra in the form of GST. Also, event management service, will have to pay an additional 18 per cent GST on the cost. GST on marriage garden and hall booking is also 18 per cent, same as most other wedding services," it said.
Currently, the Indian wedding industry is about Rs 1 trillion and is growing at 25 to 30 per cent annually.
The estimated cost of a wedding with no expenses spared could be between Rs 3 lakh to Rs 8 crore, in India, said the chamber.
“Destination wedding or the wedding tourism sector in India which accounts for less than 10 per cent share in the overall industry is not likely to face much adverse impact of GST and demonetisation as it is already a very costly affair which mainly lures foreigners, NRIs, rich people for exotic weddings, says the paper.